MR=140-20。=20=MC Q=180 P=80 Each fringe firm will charge the same price as the dominant firm and the total output produced by the fringe will be =P-20=60.Each fringe firm will produce 12 units. d.Suppose there are ten fringe firms instead of five.How does this chang your results? We need to find the fringe supply curve,the dominant firm demand curve,and the dominant firm marginal revenue curve as was done above.The new total fringe supply curve is =2P-40.The new dominant firm demand curve is =440-4P.The new dominant firm marginal revenue curve is MR=110-.The dominant firm will produce where marginal revenue is equal to marginal cost which occurs at 180 units.Substituting a quantity of 180 into the demand curve faced by the dominant firm results in a price of $65. Substituting the price of 65 into the total fringe supply curve results in a total h fringe firm will produce9units.The market share of the dominant firm drops from 75%to 67% e.Suppose there continue to be five fringe firms but they each manage to reduce their marginal cost to MC=20+2q.How does this change your results? Again.we will follow the same method as we did in earlier parts of this problem.Rewrite the fringe marginal cos eurve toget The new total fringe supply curve is five times the individual fringe supply curve,which is jutthe marginal cost curve:P50.The new dominant firm demand curve is found by subtracting the fringe supply curve from the market demand curve to get =450-4.5P.The new dominant firm marginal revenue curve and each fringe firm will produce 20 units.The market share of the dominant firm drops from 75%to 64%. 14.A lemon-growing cartel consists of four orchards.Their total cost functions are: TC=20+5Q  MR =140 − 2 3 QD = 20 = MC  Q = 180  P= 80. Each fringe firm will charge the same price as the dominant firm and the total output produced by the fringe will be  Qf = P − 20 = 60. Each fringe firm will produce 12 units. d. Suppose there are ten fringe firms instead of five. How does this change your results? We need to find the fringe supply curve, the dominant firm demand curve, and the dominant firm marginal revenue curve as was done above. The new total fringe supply curve is  Qf = 2P − 40. The new dominant firm demand curve is  QD = 440− 4P. The new dominant firm marginal revenue curve is  MR =110 − Q 2 . The dominant firm will produce where marginal revenue is equal to marginal cost which occurs at 180 units. Substituting a quantity of 180 into the demand curve faced by the dominant firm results in a price of $65. Substituting the price of $65 into the total fringe supply curve results in a total fringe quantity supplied of 90, so that each fringe firm will produce 9 units. The market share of the dominant firm drops from 75% to 67%. e. Suppose there continue to be five fringe firms but they each manage to reduce their marginal cost to MC=20+2q. How does this change your results? Again, we will follow the same method as we did in earlier parts of this problem. Rewrite the fringe marginal cost curve to get The new total fringe supply curve is five times the individual fringe supply curve, which is just the marginal cost curve:  Qf = 5 2 P − 50. The new dominant firm demand curve is found by subtracting the fringe supply curve from the market demand curve to get  QD = 450− 4.5P. The new dominant firm marginal revenue curve is  MR =100 − 2Q 4.5 . The dominant firm will produce 180 units, price will be $60, and each fringe firm will produce 20 units. The market share of the dominant firm drops from 75% to 64%. 14. A lemon-growing cartel consists of four orchards. Their total cost functions are: TC1 = 20+5Q1 2